Richemont Reports Sales Growth in Q3 Despite Sector Slowdown

By Andrea Figueras

Luxury-goods company Richemont has announced an increase in sales for its fiscal third quarter, but acknowledges the slowdown in overall growth within the luxury sector following the postpandemic shopping frenzy.

During the three months ending December 31, the Swiss company, which owns renowned brands such as Cartier, achieved sales of €5.6 billion ($6.09 billion), representing an 8% increase at constant currency compared to the same period in the previous fiscal year.

Despite this positive result, Richemont remains cautious due to uncertainties in the macroeconomic and geopolitical environment.

The reported sales for the third quarter surpassed analysts' expectations of €5.49 billion, according to Visible Alpha consensus.

However, these results highlight a further deceleration in sales growth compared to the 12% increase achieved during the first half of the year. In the first quarter alone, sales saw a significant 19% increase at constant exchange rates.

The company's core jewelry division reported sales of €3.95 billion for the third quarter, reflecting a 12% growth at constant exchange rates.

Notably, the Asia-Pacific region accounted for the largest portion of group sales and experienced a remarkable 13% growth, driven by a substantial 25% increase in sales from Mainland China, Hong Kong, and Macau.

While Richemont achieved sales growth across all distribution channels, it reported a 5% decrease in online retail channel sales.